smallbusiness.co.uk: Helping your business think big

Cash flow conundrums

As an owner-manager, seeing your cash flow steadily dwindle can...
Have your say »

RSS

Large firms late repayment hitting small companies

Aug 16 2007

SMEs are being put in jeopardy because larger firms are 'dragging their feet' with payments, new research suggests.

According to the Forum of Private Business (FPB), around 75 per cent of small firms are suffering with cash flow problems because they are awaiting payment from their larger counterparts.

The FPB has called on the Office of Fair Trading (OFT) to tackle this problem by allowing SMEs to bring a complaint directly to the OFT or the Competition Commission.

Calling the government into action, Matt Hardman at FPB says: 'Our survey adds to a growing body of evidence that smaller business suppliers are often bullied and treated unfairly by big business.

'While most of the public sector seems to have got the message on late payment, big business is dragging its feet. The OFT needs to find a way of addressing this problem.'

The FPB has also warned small firms over their dealings with the Department for Environment, Food and Rural Affairs (Defra) with the new outbreak of foot and mouth.

It is claimed that some companies are still awaiting payments from Defra due to the last outbreak.

Comments

There are currently no comments on this article

Prize Draw

Smallbusiness.co.uk has teamed up with Avery® Quick&Clean™ Business Cards to offer five lucky readers the chance to win a copy of BBC Dragons' Den James Caan's new book The Real Deal and a pack of Avery® premium heavyweight business cards. To enter the prize draw, simply answer our question here

Polls

Latest News

Brown: Banks should pass on cut

Prime minister Gordon Brown is urging British banks to pass on the one percentage point interest rate cut to help businesses trying to get loans.

Businesses criticise rate increases

Companies are in uproar about plans to allow councils to increase business rates by two pence in the pound to pay for local development projects.

Interest rates slashed again

The Bank of England has announced another aggressive rate cut, reducing the base rate from three to two per cent.

London firms get £23 million

Mayor of London Boris Johnson has welcomed a package of £23 million to help small to medium-sized businesses in the capital.

More EIB funding available to SMEs

The Bank of Scotland intends to make £250 million of funds available to SMEs in the next two weeks.

Crime costs small firms £13,500 a year

Businesses pay on average £13,500 for crimes against them each year, with these acts accounting for 20 per cent of all recorded offences in the UK, new figures claim.

Trade credit insurance hurting retailers

Retailers being refused trade credit insurance is leading to problems in the industry, especially for small to medium-sized businesses, the British Retail Consortium (BRC) warns.

Proposals for SMEs not effective, says BCC

David Kern, chief economist at the British Chamber of Commerce, has criticised Alistair Darling’s Pre-Budget proposals for SMEs.

Tax rise put on hold

The planned one percentage point rise in corporation tax has been put on hold in an attempt to boost small businesses.

VAT cuts 'will not help small firms'

A reduction in value added tax (VAT) of 25 pence in the pound will not help small businesses and many may not pass it on, say some entrepreneurs.

Tax cuts possible to boost spending

The pre-Budget report, due out today, may see cuts in value added tax (VAT) to encourage Britons to increase spending in the run up to Christmas.

Guides & Tips

No guarantee of funding with the SFLG

The likes of The Body Shop and Waterstone’s used funding through the Small Firms Loan Guarantee (SFLG) scheme to get off the ground. But with banks now so reluctant to lend, some believe it’s time for an overhaul

Keeping the Bank happy

Trevor Nobbs, associate director of Barclays business support team, to offer some top tips to staying on your bank manager’s good side during the downturn.

Have your say: Funding for women

Financial institutions may well need a shake up when helping female entrepreneurs. SmallBusiness.co.uk speaks to some women in business about their experiences of raising finance and asks for your comments.

Don't Miss

SMEs remain unimpressed by budget proposals

Businesses say "no" to PBR

Slashing VAT and increasing National Insurance has left the nation's owner-managers decidely underwhelmed. Here SmallBusiness.co.uk gets their reaction to the pre-budget report:

Are banks backing your business?

SMEs tell us how the banking situation is affecting them

Your first business loan

If your business plan and financial forecasts are sound, you may be feeling brave enough to approach a bank for funding.

Store

FT Guide to Personal Tax

Formerly the Lloyds TSB Tax Guide, the FT Guide to Personal Tax is now published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and Jonquil Lowe, this unique guide gives step-by-step advice to completing your tax return as well as 100 tax-saving tips.

FT Guide to Business Start Up

Formerly the Lloyds TSB Small Business Guide, the FT Guide to Business Start Up is now published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc, this unique guide has sold over two million copies. It offers practical advice about starting and running your own business.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.